1. business and industrial
2. business operations
3. management
4. project management

Approved by .................................. Patience Singo, Director of SAM Project.
Ulaanbaatar, May 14, 2015
Terms of Reference for conducting a baseline study on the value of
investment made by miners and traders into local economic sector
and their contribution to economic growth in ASM dependant aimags.
Place of mission:
Duration of mission:
Total budget:
In ASM Aimags: Bayankhongor, Gobi-Altai, Dornogobi,
Dundgobi, Tuv,Selenge, and Uvs
Two months: June 15- Aug 14, 2015
CHF10,000 as a maximum. (However, a proposal with the
highest quality and the lowest cost will be selected).
1 Background
In Phase 4 of its implementation, one of broad Outcome areas of the Sustainable Artisanal
Mining (SAM) Project is focusing on maximizing commodities contributions from Artisanal and
Small-scale Mining(ASM) to economic strengthening and improved livelihoods at local, regional
and national levels. Therefore, the main factors SAM project believes to be important towards
reaching this goal would comprise of:
-
formalizing ASM activities
formalizing minerals supply chains to increase the contribution of ASM sub-sector into
treasury funds of the state and payment of royalties,
building supply chain resiliency through formalising all actors enabling participation of
more ASMers and traders.
expanding economic choice and freedom to support ASM miners and traders for
creation of business models and alternative income generation activities, and
rural economic strengthening by stimulating contributions of miners and traders to rural
livelihoods and economic diversification and resilience.
In order to indicate ASM contributions to local economyafter project interventions, the current
level of contributions should be identified for the purpose of making comparison of project
impact and scenarios at the end of this phase. Miners and traders are considered to be main
economic players and contributors in the local areas in addition to their monthly income tax
payment of 53,000MNT to local governments. This baseline study to be undertaken in project
intervention areas aims at assessing value of investments made by the ASM sub-sector into
local economic sectors and their contribution toeconomic growth in ASM aimags. Investments
can be physical and/or intellectual as well as taxes, social security and health insurance paid by
miners and traders. Income diversification by both miners and traders will be determined.
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The study will also determine current economic growth rate of the aimags and classify the key
contributors and define the level of contribution from ASM where appropriate, especially for
ASM dependant aimags.
2 Objectives and Tasks
The main objective of this baseline study is to indicate current level of value of investments
made by miners and traders into local economic sectors and their contribution to economic
growth in ASM dependant aimags.
Specific tasks:
The followings would be main tasks of the service provider, but not limited to:
- Define economic output by ASM in specific soums and aimags
- Identify main areas/fields of investments made by ASM sub-sector
- Determine the amount of investment in each of the areas/fields identified above
- Determine shares of investments in each area/field
- Main entities (soums and aimags) benefitting from the investment
- Identify future investment interests of miners and traders
- Define economic growth of ASM dependant aimags and determine ASM contribution
- Make recommendations on further SAM project support for income diversification activity
for miners
- Relate findings to SAM project Output 2.4 indicators.
3 Expected results
Two main results expected:
A baseline of investment by ASM sub-sector is determined in each type and amount of
investments. Findings of the study will be presented by the service provider to relevant
stakeholders.
Economic growth of ASM dependant aimags defined and ASM contribution quantified.
4 Tentative schedule
The study will be conducted in two months, from June 15 to August 14, 2015.
5 Methodology
Methodology would include a desk review of related documents, face to face meetings and
interviews with respondents, conducting surveys and questionnaires, economic and statistical
research, analysis of government data etc. However, the detailed methodology will be
discussed and agreedwith SAM Project.
6 Monitoring
During the study, a minerals trade expert for SAM project will work as a focal point and provide
monitoring during the course of the study. Monitoring includes reporting, meetings with the
service providermonthly and when necessary.
7 Qualifications/Requirements
-
Previous experience in conducting study in mining sector, especially in ASM sub-sector
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-
Previous experience in conducting economic studies especially on rural and local
economic growth indicators,
At least two members of economist/financial analyser with special expertise in minerals
economics and rural economic development,
Expertise in understanding investment, its calculations and economic growth.
Expertise in working with grass roots, especially with artisanal miners,
Having knowledge on local economic priorities and government regional development
policies
8 Reporting
Whenever an invoice is submitted, it should be accompanied by a report in English. A final
report both in English and Mongolian languages will be submitted upon the completion of the
study. Both hard and soft copies of the report are required to be submitted to SAM Project
office.
9 Key partners
Local governments, Ministry of Mining, MRAM, Ministry of Finance, ASM NGOs, SAM Project,
miners and traders would be main partners in performing the study.
10 Beneficiaries
Local governments, ASM NGOs, SAM Project
11 Application of HRBA and Gender Mainstreaming
The SDC SAM is committed to the “human rights based approach” and views that the human
rights based approach (HRBA) are a process which applies core legal principles binding on
States aimed at ensuring the fuller enjoyment of human rights by all. The core principles that are
common to all HRBAs are summarized in the Annex. The project is committed to ensuring equal
opportunities for both male and female stakeholder. The Project partner hereby agrees to
uphold the HRBA and to ensure gender equality and gender sensitivity in their implementation
of SAM contract.
Reference documents
SAM Project Document, ASM related legal documents available at SAM office, relevant
previous study reports at SAM project.
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